HONG KONG UNIVERSITY OF SCIENCE AND TECHNOLOGY
SCHOOL OF BUSINESS AND MANAGEMENT
FALL 2015
ISOM 3100 – BUSINESS SIMULATION AND STRATEGIC DECISIONS
Instructor: Dr. Ted Clark (tclark@ust.hk)
Date and Time: Tuesday, 13:30-16:20
Teaching Assistant: Chris Tse (imchris@ust.hk)
Course Website: http://canvas.ust.hk
Mobile: 9640-4400
Venue: G005, LSK Building
Phone: 2358-7653
Objective and Learning Pedagogy: This course introduces students to strategic
management and decision making using a combination of lectures, case studies, and a handson business simulation exercise. The lectures will focus on disseminating and elaborating the
foundational concepts in modern competitive strategies and decision making; the case studies
will illustrate how these concepts are applied and strategies are executed in real business
enterprises; and finally, the business simulation exercise will provide students an effective
platform to make complex strategic business decisions in a realistic competitive environment.
Students are expected to engage in case studies and a team project to analyze and discuss a
broad spectrum of business issues, decisions, and strategic management tradeoffs. The
objective is to develop a broad perspective in managerial decisions that drive modern global
organizations. Active participation in classroom case discussion and the simulated business
competition project is an important component of students’ overall performance in the course.
Capstone Business Simulation The Capstone Business Simulation, used by more than 100
business schools worldwide including Wharton and Harvard, and used as part of the HKUSTKellogg EMBA program, will be integrated into the course lectures and discussions, and will
give students the opportunity to work as teams in making important tradeoffs and strategic
decisions regarding product positioning, marketing, operations, human resources and finance.
Assessments
Individual participation (20%) – contributions to in-class case discussions, individual work
on the Capsim online quiz and simulation rehearsals, and attendance.
Individual assignments (20%) – you need to read and analyze two business cases and
submit short written answers to all case questions. In general, your answers should not
exceed 4 pages for each case. In addition, each student needs to submit a brief reflection of
the Capsim experience in the last class. Your reflection should not exceed 2 pages.
Group business simulation (40%) – students need to manage a company on a team basis in
a simulated business environment by making strategic decisions involving product
positioning, marketing, operations, human resources and finance. Team performance will be
assessed in multiple rounds and along dimensions including profitability, market share,
utilization of financial resources, etc. In addition, each team will need to submit a short
written report (1 page) on team strategy. The relative performance of each team on multiple
criteria for eight rounds of will represent 40% of the grade for the course.
Final Exam (20%) – short answer and multiple choice or true-false questions, closed book.
Course Schedule
Acad.
Date
Week
Lecture Topic
Pre-Assigned Reading / Tasks
(complete BEFORE class)
 Porter (2008)
1
Sep 1



2
Sep 8


Review of general business concepts
Tactical decisions

Read Capsim Team Member Guide
3
Sep 15


Competitive positioning
Six basic strategies

Read Capsim Industry Conditions
Report
Sep 22



Team breakout for Practice Round 1
Discussion of Practice Round 1 results
Performance assessment



Team roster submitted
Complete simulation rehearsal
Complete Capsim online quiz
Team breakout for Practice Round 2
Discussion of Practice Round 2 results
Case discussion: GE

Assignment: GE
Sep 29



Oct 6



Team breakout for Practice Round 3
Discussion of Practice Round 3 results
Defining competitive advantage
Team breakout for Competition Round 1
Discussion of Competition Round 1 results
Team breakout for Competition Round 2

Oct 13



In-class assignment: One-page
Team strategy report
Oct 20



Discussion of Competition Round 2 results
Team breakout for Competition Round 3
Discussion of Competition Round 3 results


Competition Round 2 submitted
Review of Competition Round 2
Results
Oct 27



Analytical skills for strategic decisions
Team breakout for Competition Round 4
Discussion of Competition Round 4 results
Team breakout for Competition Round 5
Discussion of Competition Round 5 results
Case discussion: Robert Mondavi

Assignment: Robert Mondavi
Nov 3



Nov 10

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
Team breakout for Competition Round 6
Discussion of Competition Round 6 results
Team breakout for Competition Round 7
12
Nov 17



Discussion of Competition Round 7 results
Team breakout for Competition Round 8
Discussion of Competition Round 8 results


Competition Round 7 submitted
Review of Competition Round 7
Results
13
Nov 24


Reflection: Lessons from Capsim
Course wrap up and review for Final Exam

Assignment: Capsim reflection
4
5
6
7
8
9
10
11
Course introduction and policies
Introduction to Capsim
Foundation of competitive strategy